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Reason to be optimistic

Posted: September 19, 2013 - 5:07pm

Clarion editorial

News that state officials have asked ConocoPhillips to take its North Kenai liquefied natural gas plant out of mothballs gives us more reason for optimism that the Cook Inlet oil and gas renaissance will be a lasting trend on the Kenai Peninsula.

Certainly, our optimism is somewhat guarded. Alaska’s long term energy puzzle still has a lot of moving pieces, from exploration to infrastructure to politics. The state’s request that ConocoPhillips apply for an export permit is a long way removed from shipments of LNG being delivered to foreign ports.

Nevertheless, the state’s announcement comes on the heels of successful efforts from several independent explorers, and assurances that local needs for natural gas can be met through 2018.

With local needs met, there is a need to find markets for Cook Inlet gas outside of Southcentral Alaska — a factor that has limited industry investment in new gas exploration in the region in recent years. With the LNG plant online, the market for Cook Inlet gas would greatly expand.

Coupled with the potential for Agrium to resume operations — company officials took stock of what it would take restart its North Kenai plant earlier this year — that could mean several hundred good jobs returning to the area in the near future.

Of course, that’s an optimistic outlook. ConocoPhillips will need to determine if the economics of restarting LNG shipments make it a viable option.

But the fact that it has become an option just a year after the decision was made to mothball the plant is good reason to be optimistic.

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A translation from the French origins to English literally means 'rebirth'.

Cook Inlet oil and gas 'rebirth'?

In this corporate scripted press release, the supposedly very serious people are giving out assurances that local needs are taken care of through 2018?

Three years? That's the lamentably short period these supposedly very serious people are calling assurances?

The editors echo the spin, their conclusion? 'With local needs met', it's on to the next corporate proposal.

We're supposed to base our 'optimism' on a 3 year chance we might not swing right back into another crisis of gas shortages and energy shutdowns?

Look who these 'assurances' are coming from.

These are the same people that assured us, right up to last winter, that we are about to go dark and freeze. That from these same 'very serious people'.

Today, it's rebirth. Literally, rebirth, they say.

Yesterday, they used a supposed shortage to justify all kinds of public money being spent to prop up corporate profits. Today, its a supposed glut they want us to believe will fuel public money being spent to prop up the next corporate scheme to defraud.

Forget all that talk these very serious people were peddling for the last few years, hey, we've got 3 years of living high on the hog. No worries, right?

Don't doubt it, the very serious people have 'assured' you.

Oh, wait, there is that disclaimer at the last, the corporate overlords will have to decide if their profits allow them to allow this rebirth to proceed.

Wait for it, ...they'll need another tax break or another subsidy or both.

But just listen to the very serious people, you should be overjoyed to give your tax money to the corporate overlords, you can be part of the 'renaissance'.

Being a slave to the latest corporate spin of the moment and issuing what amounts to little more than public relations press releases which echo corporate propaganda is not responsible editorial policy.

I am happy for this miracle gas find and hope it puts many LOCAL PEOPLE to work. LOCAL PEOPLE should be the key word here and being moved up here from the lower 48 is not LOCAL. If you don't get a state dividend then your not LOCAL.
I too do see future problems for local residence beyond the 3 years plans as it once again could turn into a circle of bad news and higher prices from bending us over the old barrel as history shows has been done. It does appear that the oil & gas circle of life is coming back around, for how long is the question this time is the question?